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EU Calling on Members to Create a Banking Union

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    Reason Magazine editor-in-chief Matt Welch predicts a bailout for Spain.

  • Duration 2:46
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-- the European Union's executive office calling on the seventy countries to create a banking union.

And to oversee if needed a bailout of the banking sector is that where were headed.

Another bank bailout that Welsh is the editor in chief that reason.

Magazine he's -- he's here in the studio with us in.

I think that's what it's gonna come down to the bailout this time native Spanish banks I think there's going to be a a cascade of bailouts here probably of Spanish banks and next I wouldn't foresee that -- be a new.

The banking commission group because -- -- Germany -- -- sort of Vito and -- -- recommendation at this point and that's as far as this point ago but what your past to figure out -- Where's the -- going to be -- is it going to be Greece let Greece go as the as the example.

And the make sure that Spain doesn't -- many ways Spain's fundamentals.

Are as bad if not worse -- the fourth largest economy in -- -- -- well that's what I was gonna say it's a much bigger economy obviously the increase and you and you talk about how big it is game.

Get your free markets.

-- guy that we went through no way to -- -- here the United States some what argue a TARP at the end of the day was successful because the banks paid back of the money with interest and we avoided an absolute.

Disaster after Lehman and Bear Stearns.

Should the Europeans.

Go forward with some sort of a banking bailout -- a bailout makes sense in this case.

Well I mean I would I would look at our bailouts as an example of something that didn't actually deliver on its promise it disposed to forestall the type of economic carnage that we've already seen.

We just keep moving the goalposts on on what we actually avoid its we've ordered the -- and worst depression of all time now so it's -- success it's not really.

How I would look at that I think -- your -- to realize is -- make decisions about.

Is can Greece and Germany coexist in mean that was the biggest question twenty years ago fifteen years ago this is the most.

Predictable.

Financial calamity that we've -- in the really long time and so it they're having to contemplate these sort of taboo subjects now.

Really for the first time and it's amazing that they haven't war game that out so formal that's that you wrote about I was looking at what are your recent columns that it and the headline on it was it was a long headline but I thought it was right on products that.

You know why didn't agree to the European leaders think about the inevitable Greek exit in other words.

We -- seen this coming why didn't they realize it and do something about it earlier but it's almost too late look at the Euro by the way.

Below a dollar 24.

Today and obvious first time since July of 2010 we've seen that but.

They should have seen this coming absolutely I mean Greece hasn't had a fiscal responsible governments in space for the time back a -- -- and that now while Germany.

Has had you know been fiscal -- for the last half century so.

It wasn't going to work to begin when clients are now in Europe I think pass to finally look at those kind of question and we talk about it -- it could have a big impact on us and our politics but -- to talk about that Matt thank.

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